Agribusiness group Donegal Creameries reported adjusted operating profit of €3 million for 2009 and said results were “satisfactory” overall in a challenging year.
The Letterkenny-based company said profitability improved in both dairy and produce businesses, with operating profit in the dairy division rising 23 per cent to €2.2 million for the year while produce rose 64 per cent to €2.9 million.
Turnover at the firm reached €113.3 million, 12.8 per cent down from €129.9 million a year earlier. The dip was blamed mainly on a "significant" reduction in dairy prices, and a decline in milk volumes produced at farm level, which contributed to a €10 million decline in turnover to €46 million.
However, a difficult year for agri-inputs led to an operating loss of €2.4 million, compared to last year's profit of €1.3 million. This was attributed to volatility in raw material pricing, cross border competition and a lack of cash liquidity at farm level.
Debt at the group was reduced from €26.7 million to €20.5 million.
However, despite the slip in overall turnover, the company said adjusted earnings per share of 48.9 cent were above market expectations.
"Despite the negative impact of the well documented economic conditions for 2009 on many of our operations, the group delivered a satisfactory performance with excellent strategic performance in key business areas of added value dairy and produce," said chief executive Ian Ireland.
"The board is pleased with the progress made in 2009, especially in areas targeted for key strategic growth and remain confident for the future."
